Accounting firm "Estudio Cantero, Sartori, Fernandez de Scala"will verify claims until December 9. After verifying the claims,the trustee will then submit the individual and general reportsto court. Dates for submission of these reports are yet to bedisclosed.

The informative assembly will be held on September 20 next year.This is one of the last parts of the reorganization process.

The Company's trustee, Mr. Sergio Leon Novick, will examine andauthenticate creditors' claims until March 14 next year. This isdone to determine the nature and amount of the Company's debts.Creditors must have their claims authenticated by the trustee bythe said date in order to qualify for the payments that will bemade after the Company's assets are liquidated.

Dr. Saravia, clerk no. 16, assists the court on the case thatwill conclude with the liquidation of the Company's assets.

Creditors with outstanding claims against the Company arerequired to submit proof of the indebtedness to trustee HectorAlberto Cueto before the deadline. Failure to submit requireddocuments within the verification period will meandisqualification from the post-liquidation distribution thatwill be made.

The Company will undergo the bankruptcy process with Mr. EnriqueBattellini as its trustee. Creditors are required to presenttheir proofs of claims to the trustee for verification beforeDecember 1. Creditors who fail to have their claimsauthenticated by the said date will be disqualified from thepayments that will be made after the Company's assets areliquidated at the end of the bankruptcy process.

Working with Dr. Estevarena, clerk no. 35, the court assignedMr. Luis Maria Guastavino as trustee for the bankruptcy process.The trustee's duties include the authentication of the Company'sdebts and the preparation of the individual and general reports.Creditors are required to present their proofs of claims to thetrustee before December 13.

The Company's assets will be liquidated at the end of thebankruptcy process to repay creditors. Payments will be based onthe results of the verification process.

FENNIGGER S.A.: Court Opens Liquidation---------------------------------------Fennigger S.A. prepares to wind-up its operations following thebankruptcy pronouncement issued by court no. 14 of Buenos Aires'civil and commercial tribunal. The declaration effectivelyprohibits the Company from administering its assets, control ofwhich will be transferred to a court-appointed trustee.

Infobae reports that the court appointed Ms. Susana HaydeeMugnai as trustee. She will be reviewing creditors' proofs ofclaims until December 2. The verified claims will be the basisfor the individual reports to be presented for court approval onFebruary 15, 2005. Afterwards, the trustee will also submit ageneral report on April 5, 2005.

Clerk No. 28 assists the court on this case that will end withthe disposal of the company's assets to cover its liabilities.

CONTACT: Ms. Susana Haydee Mugnai, Trustee Lavalle 1459 Buenos Aires

KAIXO S.A.: Reports Submission Set---------------------------------- Mr. Carlos Leon Desseno, the trustee assigned to supervise theliquidation of Kaixo S.A., will submit the validated individualclaims for court approval on February 25, 2005. These reportsexplain the basis for the accepted and rejected claims. He willalso submit a general report on April 8, 2005.

Infobae reports that court no. 20 of Buenos Aires' civil andcommercial tribunal has jurisdiction over this bankruptcy case.Clerk no. 39 assists the court with the proceedings.

MULTICANAL: HBO Files Criminal Complaint----------------------------------------The conflict between HBO Latin America Group and Argentine cableoperator Multicanal SA escalated Monday when the formerannounced that it has filed a criminal complaint againstMulticanal for alleged signal theft for 10 channels.

In an ad published in local newspapers, the U.S. company claimedMulticanal "is violating express standards" of national andinternational law by continuing to broadcast HBO Latin Americachannels despite the expiration of its license on Aug. 31.

HBO also rejected Multicanal's position that it had unreasonablyhiked rates.

"We roundly deny all Multicanal's accusations toward HBO LatinAmerica Group, which are aimed at distracting public opinionfrom the true crime that would be committed," the ad said.

The dispute between the companies began on Oct. 10 when the U.S.firm stopped sending its signal to Multicanal, which thenallegedly resorted to pirating the HBO feed from other localoperators.

HBO, which is part of Time Warner Inc. (TWX), can still appealthe government ruling.

SCP: Default Level on Corporate Bonds Unchanged-----------------------------------------------Standard & Poor's International Ratings, Ltd. Sucursal Argentinamaintains an `raD' rating on various corporate bonds issued bySociedad Comercial del Plata S.A., according to the ComisionNacional de Valores, CNV. The action, which was taken based onthe Company's financial status as of June 30, 2004, applies tothe following bonds:

- US$400 million of "obligaciones negociables" under Program.The maturity of the bonds was not disclosed.

According to S&P, an obligation is rated `raD' when it is inpayment default, or the obligor has filed for bankruptcy. Therating is used when interest or principal payment are not madeon the date due even if the applicable grace period has notexpired, unless the ratings agency believes that such paymentswill be made during such grace period.

TELEFONICA DE ARGENTINA: Director Leaves Post---------------------------------------------Mr. Miguel Angel Gutierrez has resigned from his post asdirector of fixed-line carrier Telefonica de Argentina S.A. Mr.Gutierrez said his resignation is based upon personal reasonsand upon his need to take direct care of internationalactivities as well. The Company's Board will consider hisresignation in the next meeting.

TRANSENER: To Operate Transmission Line in Brazil-------------------------------------------------Argentine electric transmission company Transener is set to earnbetween US$2 million and US$2.5 million annually when it'scontract to operate a 500kv Brazilian transmission line beginsin 2007.

El Cronista says that while the term of the concession contractis for 30 years, Transener's deal with Spanish company Elecnorcovers only the first five years of operations (2007 to 2011)with the option to renew for another five years.

Proceeds from the contract will significantly augment theCompany's annual revenues from international operations, whichnow stand at around US$5.5 million or 10 percent of theCompany's total revenues.

Elecnor has earmarked EUR237.5 million to build the line thatwill stretch 811 kilometers from the states of Mato Grosso andMinas Gerais.

Brazilian oil group Petrobras controls 32.5 percent of Transenerwhile investment company Dolphin Fund owns another 32.5 percent.The Company has debts currently estimated at US$560 million.

The upgrade on the bonds reflects both the diminishing threat ofan involuntary restructuring of either class of debt in thecoming years and the government's track record of timelypayments on this debt even while it has remained in default onother classes of debt for almost three years. Good economicgrowth has boosted the government's revenue, with taxcollections likely to rise by more than 30% this year over thatin 2003.

A further increase in the ratings for both the BODENS and thePrestamos Garantizados depends upon the terms of a debtrestructuring agreement between the sovereign and its creditors,which will also determine Argentina's new issuer credit rating(now 'SD'). The ratings on both classes of debt are likely to beequalized with the ratings Standard & Poor's will assign to thenew sovereign debt issued in exchange for debt now in default.

The Prestamos Garantizados were originally sovereign bond debtof approximately US$42 billion that was swapped into loans inNovember 2001 and subsequently converted into Argentine pesodebt in 2002. In 2003, the government reconverted almost half ofthe peso debt back into U.S. dollar-denominated bonds (which arestill in default) for those creditors who refused to accept theoriginal conversion into pesos. The remaining amount,approximately Argentine peso (ArP) 42 billion, is largely heldby banks.

The sovereign issued BODENs after its late-2001 default. Theyare designed to compensate depositors for their frozen depositsin the banking system and to compensate banks for the early 2002asymmetric conversion of their assets and liabilities fromdollars to pesos. Approximately ArP13.3 billion and US$13.7billion in outstanding BODEN debt is affected.

Standard & Poor's assigned its 'SD' sovereign credit ratings toArgentina in late 2001, when the government defaulted on overUS$80 billion in debt. The government subsequently entered intoa payment default on most of its external commercial debt.Although the terms of a potential rescheduling of Argentina'ssovereign debt remain uncertain, the sovereign's ratings after arescheduling will continue to be constrained by:

--A high government debt burden, even assuming generous debtforgiveness. The government's debt burden may reach 130% of GDPat the end of 2004. Its future debt burden will depend largelyupon the level of debt forgiveness and on the government'sunderlying fiscal stance.

--Limited fiscal and monetary flexibility. The improvement infiscal performance in 2004 reflects both cyclical and structuralfeatures. Tax collections have improved due to high exportprices and to renewed economic growth that is boostingemployment. Maintaining the current level of tax revenue (as ashare of GDP) will prove to be difficult, placing greaterpressure on spending control in the coming years in order togenerate adequate primary budget surpluses to meet future debtservice obligations. Monetary flexibility will be constrained bythe legacy of the recent financial crisis, which led to the lossof the central bank's autonomy and damaged the transmissionmechanism of monetary policy.

Argentina's ratings will continue to be supported by:

--A higher level of human development than in other similarlyrated sovereigns. Argentina enjoys better health and educationindicators, and better physical infrastructure, than its ratedpeers and has greater technical and managerial depth. Thesefactors augur well for GDP growth prospects post-rescheduling,but are balanced by the country's weak legal and regulatoryframework.

FOSTER WHEELER: Elects Stephanie Hanbury-Brown to its Board-----------------------------------------------------------Foster Wheeler Ltd. (OTCBB: FWLRF) announced Monday thatStephanie Hanbury-Brown has been elected to its board ofdirectors.

"We look forward to working with Stephanie and to benefitingfrom her considerable skills and knowledge," said Raymond J.Milchovich, chairman, president and CEO.

Ms. Hanbury-Brown recently founded Golden Seeds LLC, aninvestment and advisory firm. She previously held positions ofincreasing responsibility with J.P. Morgan. Those positionsincluded serving as J.P. Morgan's head of eCommerce, as theChief Operating Officer of its Global Equities division, as thehead of its International Private Client Group, and as the headof its Futures and Options Group. Prior to joining J.P. Morgan,Ms. Hanbury-Brown worked with Rouse Woodstock in London andSydney, and with Lane & Lane Solicitors in Sydney. She holds aB.A. from the University of Sydney.

Foster Wheeler Ltd. is a global company offering, through itssubsidiaries, a broad range of design, engineering,construction, manufacturing, project development and management,research and plant operation services.

Foster Wheeler serves the refining, upstream oil and gas, LNGand gas-to-liquids, petrochemical, chemicals, power,pharmaceuticals, biotechnology and healthcare industries. Thecorporation is based in Hamilton, Bermuda, and its operationalheadquarters are in Clinton, New Jersey, USA.

The new inbound portfolio consists of Global Crossing VoIP DID -- a new VoIP direct inward dial service -- and a new GlobalCrossing VoIP Toll Free Transport service. VoIP DID providescarriers with local origination for nationwide local numbersthrough a single IP point of interconnection as a cost-effectivealternative to traditional toll-free applications. This serviceeliminates traditional time division multiplexing (TDM), privateline and foreign exchange service fees by providing a single IPconnection alternative.

Global Crossing VoIP Toll Free Transport provides carriers withinterconnection, transport and termination of 800 packet-basedvoice traffic for calls originating as TDM, thereby eliminatingthe need for capital-intensive IP to TDM conversion gear. GlobalCrossing VoIP DID service is generally available now in allmajor U.S. markets while Global Crossing VoIP Toll FreeTransport is available throughout North America.

New enhancements to existing VoIP outbound service enable IPtransit, public Internet and fully meshed IP VPN connectivity,which provides carriers with unlimited VoIP DID and VoIP TollFree connection options to maximize flexibility and controlexpenses. Global Crossing VoIP Outbound service and the latestenhancements are currently available worldwide with any publicInternet connection for termination of traffic to any phone.

Broadband telephony providers can leverage Global Crossing'sVoIP services to enable IP-based local, long-distance and tollfree communications services to residential and businesscustomers. Carriers will also benefit greatly as they eliminatededicated physical connections and gateways to multiple markets,and connect all markets over a single IP connection, whichincreases their bandwidth efficiency.

Incoming DID and toll free calls originate as TDM calls and areconverted to IP when they reach the Global Crossing voicenetwork, and then are routed directly to the carriers' IPnetwork through a SIP-based IP interconnection. DID numbers canbe purchased directly from Global Crossing or can be ported fromthird party providers to Global Crossing. The most significantVoIP enhancement is providing multiple IP connectivity methodsto meet the diverse VoIP needs of key customer market segments,from new entrants to established carriers, regardless of theirVoIP network architecture. The new enhancements also enableGlobal Crossing to offer two distinct routing options forinternational termination.

Additionally, carriers now have a choice for domestic andinternational voice traffic termination through uncompressedaudio (G.711) for highest quality voice traffic, or compressedaudio (G.729a) that increases voice traffic capacity by 60percent. In addition, Global Crossing is now able to support theinternational standards for compression with silence suppression(G.729ab). The greater circuit efficiency of G.729 enablessmall- to mid-size resellers such as IXCs and other serviceproviders target non-compression sensitive applications.

According to a recent Yankee Group report, VoIP will have closeto one million subscribers by year-end 2004 and will serve 17.5million U.S. households by year-end 2008, compared to 131,000 atyear-end 2003. Global Crossing's Carrier VoIP Services willenable broadband telephony providers to serve this expandingmarket.

iLocus, another market research organization, also published arecent report on the global VoIP market, citing Global Crossingas the market share leader for the transport of VoIP traffic ona national level in the U.S. and third for international VoIP.

Global Crossing VoIP DID is the latest addition to GlobalCrossing's wholesale VoIP services portfolio, which launched inSeptember 2003 with the introduction of Global Crossing VoIPOutboundO. Global Crossing was an early adopter of VoIP, havingdeployed its global VoIP platform four years ago. It currentlytransports up to 2.5 billion minutes per month over the VoIPplatform, representing approximately 40 percent of its totalvoice traffic.

Global Crossing provides telecommunications solutions over theworld's first integrated global IP-based network. Its corenetwork connects more than 300 cities and 30 countriesworldwide, and delivers services to more than 500 major cities,50 countries and 6 continents around the globe. The company'sglobal sales and support model matches the network footprintand, like the network, delivers a consistent customer experienceworldwide.

Global Crossing IP services are global in scale, linking theworld's enterprises, governments and carriers with customers,employees and partners worldwide in a secure environment that isideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of manageddata and voice products including Global Crossing IP VPNService, Global Crossing Managed Services and Global CrossingVoIP services, to more than 40 percent of the Fortune 500, aswell as 700 carriers, mobile operators and ISPs.

CEMAR: May See Profits This Year--------------------------------Brazil's Maranhao state power distributor Cemar is expected toreturn to black this year following a debt restructuring and afive-year, BRL300-million investment program launched by its newcontroller, local investment fund GP Investimentos, suggestsBusiness News Americas.

GP Investimentos took over control of Cemar in April from powerregulator Aneel, which had managed the utility since 2002 whenUS power company PPL (NYSE: PPL) abandoned the investment aftersustaining heavy losses.

Among conditions for taking over control, GP Investimentosinjected capital into Cemar while creditor federal power holdingcompany Eletrobras agreed to exchange its debt for a minoritystake.

The company's debt has been reduced to BRL416 million fromBRL747 million.

- Net revenues were R$1.8 billion in the third quarter of 2004,flat when compared to the third quarter of 2003. Year-to-datetotal revenues were R$5.5 billion, increasing 5.9 percentcompared to the same period of 2003.

- EBITDA in the third quarter of 2004 was R$241 million. Thattotal was reduced by approximately R$107 million of provisionsprimarily related to civil and labor contingencies.

- Net loss in the third quarter of 2004 was R$67 million. Year-o-date net loss was R$126 million.

- Total capital expenditures in the third quarter of 2004 wereR$120 million. Year-to-date, capital expenditures were R$414million.

Voice Business:

Domestic Long Distance

Domestic long distance revenues were R$949 million in the thirdquarter of 2004. Year-to-date domestic long distance revenueswere R$3.0 billion. Compared to the second quarter of 2004,domestic long-distance revenues declined 3.0 percent.Competition and the reduction in the number of local areascontributed to this decrease and offset the growth in revenuesresulting from tariff increases. A smaller number of local areasreduced the size of the long distance market, and although itrepresents some loss of revenue for Embratel, the gross marginimpact of this elimination is positive.

Third quarter 2004 domestic long distance revenues declined 11.1percent when compared to the third quarter of 2003, whichreflected a lower level of basic voice traffic mainly due tocompetition. Year-to-date domestic long distance revenues wereR$3.0 billion, representing an increase of 1.8 percent whencompared to the first nine months of 2003. This growth isattributable to the introduction of the per call carrierselection code for the long distance SMP market in the secondhalf of 2003.

International Long Distance

International long distance revenues were R$176 million in thethird quarter of 2004. In the nine months ended September 30,2004, international long distance revenues were R$566 million.International long distance revenues declined 6.5 percentquarter-over-quarter and 13.9 percent year-over-year. Tariffreductions of 8.2 percent (July), and competition from legal andillegal providers, which are estimated to represent 30-39percent of the international long distance market, were the maincauses for the decline in the third quarter of 2004 compared tothe previous 2004 quarter.

International revenues in 2004 amounted to R$566 millioncompared to R$645 million in the first nine months of 2003. Thisdecline is the result of price reductions and competition.

Data Business:

Embratel's data communications revenues were R$425 million inthe third quarter of 2004 and R$1,272 million in the first ninemonths of 2004. Compared to the second quarter of 2004, datarevenues declined 1.6 percent due to the fact that Internetcontracts with certain providers are under negotiation and havenot been renewed. Wholesale data revenues have increased in thethird quarter of 2004 due to increasing demand from cellularproviders. Compared to the third quarter of 2003, data revenuesdecreased 2.8 percent.

Embratel's physical network continues to increase. The number ofline-equivalent (64 kbits equivalent circuits) rose 36 percentcompared to the third quarter of 2003.

In the first nine months of 2004, data revenues reached R$1,272million compared to R$1,331 million in the prior year period.The decline is mainly attributable to price reductions and thegeneral downturn in the Internet provider market.

During the third quarter of 2004, Embratel's free internetservice, Click21, broadened its geographic reach by extendinglocal coverage to 137 new cities. Click21 also increased thenumber of clients approximately 25 percent in the quarter. Withthe increased acceptance of Click21 - thanks to its award-winning higher access quality - Embratel is rapidly building afranchise which can be leveraged to offer other products in itsportfolio.

Local Business:

Embratel ended the third quarter of 2004 with local revenues ofR$164 million, reflecting a 5.7 percent increase relative to theprior 2004 quarter. This quarter-over-quarter revenue growthreflected the sale of local services to business clients andconsumers. Year-over-year, local revenues increased almost six-fold due to the growth in Embratel's local service and theacquisition of Vesper. Year-to-date, local service revenues wereR$455 million compared to R$52 million in the prior year period.

EBITDA:

In the third quarter of 2004, EBITDA was R$241 million comparedto R$519 million in the third quarter of 2003 and R$347 millionin the second quarter of 2004. EBITDA margin was 13.6 percent inthe third quarter of 2004. EBITDA margin in the third quarter of2004 was negatively affected by provisions of R$107 million.

Interconnection costs as a percentage of net revenues declinedto 46.3 percent in the third quarter of 2004 compared to 46.9percent in the previous 2004 quarter. Interconnection costs wereaffected by a mix of factors that had a favorable net result.

The local access tariff (TU-RL) fell in July due to the annualtariff readjustment, contributing to a reduction in costs.However, in September, both the local access and long distanceinterconnection tariffs increased by 5.32 percent due to thepartial adjustment to the IGP-DI basis. The reduction in thenumber of local areas which began in June and ended in Septembercontributed to lower interconnection costs.

Personnel expenses (including employee profit sharing) in thethird quarter of 2004 declined to 11.1 percent of net revenuescompared to 15.6 percent in the second quarter of 2004.

Third party services represented 12.3 percent of revenuescompared to 14.5 percent in the second quarter of 2004 and 12.4percent in the third quarter of 2003. The company is in theprocess of reviewing and renegotiating a number of third partycontracts.

Allowance for doubtful accounts remained flat at 3.7 percent ofgross revenues (4.9 percent of net revenues). A total of R$107million was set aside for provisions in the third quarter of2004.

Approximately 1/3 of this amount was classified under "Taxes"and related to some taxes the company conservatively believesmay become due. The remaining 2/3rds of this amount wasclassified under "Other operating income ("expense")" andrepresented provisions related to labor and civil contingencies.

EBIT:

EBIT loss was R$43 million in the third quarter of 2004 comparedto R$233 million profit in the corresponding 2003 quarter andR$58 million profit in the second quarter of 2004. The declinein EBIT results from lower revenues, increased interconnectioncosts and the above mentioned provisions. Year-to-date EBIT wasR$170 million profit compared with R$436 million in the firstnine months of 2003.

Net Income:

Embratel registered a net loss of R$67 million in the thirdquarter of 2004 compared to a profit of R$15 million in thethird quarter of 2003 and a loss of R$64 million in the previous2004 quarter.

In the first nine months of 2004 Embratel registered a loss ofR$126 million compared to profits of R$155 million in the sameperiod of the previous year.

Debt:

Embratel ended the quarter with a total outstanding debt ofR$3.6 billion. Debt repayment, net of new debt (all related tothe refinancing agreement) was approximately R$455 million. Netdebt declined to R$2.8 billion. Short-term debt was R$1.5billion. Approximately 86.5 percent of short-term debt is eitherhedged or in Reais (Exhibit 7).

Embratel is in the process of restructuring high cost debtassociated with the refinancing program of March 2003 for new,lower-cost debt. The company has been authorized by its Board ofDirectors to refinance up to US$600 million. Financing optionsbeing considered are local commercial paper, syndicated loans,and bilateral facilities.

Embratel is the premier communications provider in Braziloffering a wide array of advanced communications services overits own state of the art network. It is the leading provider ofdata and Internet services in the country and is well positionedto be the country's only true national local service providerfor corporate customers. Service offerings include: telephony,advanced voice, high-speed data communication services,Internet, satellite data communications, corporate networks andlocal voice services for corporate clients. Embratel is uniquelypositioned to be the all-distance telecommunications network ofSouth America. The Company's network has countrywide coveragewith 32,466 km of fiber cables.

GERDAU: Gerdau Ameristeel Prices Offering of its Common Shares--------------------------------------------------------------Gerdau Ameristeel Corporation (TSX: GNA.TO) announced Fridaythat its registration statement has become effective under theU.S. Securities Act of 1933 and that it has obtained a receiptfor a final prospectus from Canadian securities regulatoryauthorities in connection with its offering of 70 million commonshares, of which Gerdau S.A, its parent, will purchase 35million common shares and 35 million common shares will bedistributed to the public through an underwriting syndicatedescribed below.

The common shares are being sold in the United States and Canadaat a price of $4.70, or Cdn. $5.90, per share. The total grossproceeds will be approximately $329 million, or Cdn. $413million. If the underwriters exercise their overallotment optionin full (for 5.25 million common shares) and Gerdau S.A., as ithas agreed, purchases an equivalent number of additional commonshares, total gross proceeds will be approximately $378 million,or Cdn. $475 million.

The proceeds of this offering will be used to finance GerdauAmeristeel's previously announced proposed acquisition ofcertain assets and working capital of four long steel productmills and four downstream facilities, which are referred to asNorth Star Steel, from Cargill, Incorporated, to fund capitalexpenditures and working capital and for general corporatepurposes.

This press release shall not constitute an offer to sell or thesolicitation of an offer to buy, nor shall there be any sale ofthese securities in any province, state or other jurisdiction inwhich such offer, solicitation or sale would be unlawful priorto registration or qualification under the securities laws ofany province, state or other jurisdiction.

ABOUT GERDAU AMERISTEEL

Gerdau Ameristeel is the second largest minimill steel producerin North America with annual manufacturing capacity of over 6.4million tons of mill finished steel products. Through itsvertically integrated network of 11 minimills (including one50%-owned minimill), 13 scrap recycling facilities and 32downstream operations, Gerdau Ameristeel primarily servescustomers in the eastern half of North America.

The company's products are generally sold to steel servicecenters, fabricators, or directly to original equipmentmanufacturers for use in a variety of industries, includingconstruction, automotive, mining and equipment manufacturing.Gerdau Ameristeel's common shares are traded on the TorontoStock Exchange under the symbol GNA.TO.

The tendering process at ICE is currently under investigation bythe country's comptroller. The probe was initiated amidcorruption scandals involving payoffs of government officials inexchange for contract awards.

But according to ICE President Pablo Cob, contracts currently inplace with Alcatel, Ericsson and Inabensa will not be affected.

"The supplier cannot take advantage of its own misconduct, ithas to continue complying with the responsibilities as outlinedin its contract," Cob said.

"We want to continue the search for all the guilty parties ofthis unacceptable situation because the damage done to thisinstitution by those who offered and received these funds isirreparable," he added.

Last week, Alcatel's ex-country manager Edgar Valverde Acostaadmitted that he paid off public officials in order to win a400,000 GSM line contract. Alcatel has fired him for violatingthe company's ethics code.

The decision came after it was discovered that Abener Energia,which won the contract in July this year, was involved in aseparate contract - an underground cabling in San Jose. In thisparticular contract, US$100,000 was supposedly paid to formerpresident Miguel Angel Rodriguez.

Cob cited Abener Energia's Spanish parent Abengoa as saying thatthe payment was for the purchase of some land. But according toRodriguez's business administrator, it was for some consultingwork.

The Garabito project will be suspended while the discrepanciesare investigated.

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BELLSOUTH CORP.: Completes Sale of 3 LatAm Operations to TEM------------------------------------------------------------BellSouth Corporation (NYSE: BLS) and Telefonica Moviles S.A.(NYSE: TEM), the wireless affiliate of Telefonica, S.A. (NYSE:TEF), have completed the transfer of BellSouth's ownershipinterest in three wireless operations in Latin America: Ecuador,Guatemala and Panama. Telefonica Moviles has taken control ofthe operations of these properties, effective immediately.

BellSouth will receive $1.2 billion for its interest in thethree properties and will recognize a gain of approximately $600million, or approximately 33 cents per share, in the fourthquarter of 2004.

The two companies announced in March 2004 that they had reacheda definitive agreement for BellSouth to sell its interests in 10Latin American operations to Telefonica Moviles. The agreementprovided a purchase price based on total enterprise value of$5.85 billion. As announced at that time, the transaction willclose in stages with transfer of BellSouth's interest in theoperations in the remaining seven Latin American countries(Argentina, Chile, Colombia, Nicaragua, Peru, Uruguay andVenezuela) expected to close by the end of 2004 subject to allrequisite governmental approvals being obtained.

About BellSouth Corporation

BellSouth Corporation is a Fortune 100 communications companyheadquartered in Atlanta, Georgia and a parent company ofCingular Wireless, the nation's second largest wireless voiceand data provider.

PACIFICTEL: Plans to Slash Telecsa Participation------------------------------------------------Ecuadorian state-run fixed line operator Pacifictel is planningto reduce its stake in Telecsa, its mobile joint venture withsister company Andinatel, as it seeks a way out of its financialcrisis.

According to Pacifictel President Alberto Perez-Llona, thecompany is negotiating with Andinatel over a plan to reduce its50% stake in Telecsa to 17%, giving 33% to Andinatel.

The proposal would be temporary. Once Pacifictel recovers fromits own internal crises, it will get the shares back.

Pacifictel has been unable to finance its equity obligations.The company is two months overdue on monthly payments ofUS$800,000 that it and Andinatel agreed to inject into Telecsa.The payments cover expenses such as administration fees.

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BANCO DE COMERCIO: Two Banks Fight for Control----------------------------------------------Panamanian bank Primer Banco del Istmo (Banistmo) continues toset its sights on Banco de Comercio in El Salvador as itscrambles to counter the takeover offer of rival Scotiabank.

Banistmo Chairman Alberto Vallarino told local daily La Prensathat his company hopes to acquire 51 to 100 percent of Banco deComercio. He adds that Banistmo is prepared to launch a publictender offer for the bank's shares.

The Banco de Comercio bid follows several Central Americanacquisitions made by Banistmo in recent times. The bankpresently controls 89 percent of Honduran banking group BancoGrupo el Ahorro Hondureno (BGA). It has also raised its stake inHonduras' El Ahorro Hondureno Compa¤Ħa de Seguros to 60 percent.

Meanwhile, the El Salvadorean media has reported that Scotiabankis poised to acquire 59 percent of Banco de Comercio with theintention of eventually raising its stake to 100 percent. Amerger would push Scotiabank El Salvador fourth place in thecountry's banking industry.

Cananea workers began striking Friday demanding the payment of5% of Cananea's equity, related to the privatization of the mine15 years ago.

Grupo Mexico claims that the National Mining, Metallurgical andSimilar Workers Union was demanding 15% in wage increases, butrefused to negotiate the collective contract renewal until the5% equity issue was resolved, even though the equity issue isnot included in the contract.

The strike has extended to Grupo Mexico's La Caridad miningcomplex. The National Mining, Metallurgical and Similar WorkersUnion said the strike that started at 1900 GMT Monday affects LaCaridad's mine, smelter and refinery, as well as a lime plant.

Authorities can order strikers back to work if they considerthere are no grounds for the stoppage. However, the last timesuch a ruling was made, the union obtained a court injunctionand workers stayed on strike.

The strikes complicate matters for Grupo Mexico, which is incontract negotiations with workers at its U.S. mining unitAsarco and is hoping to get shareholder approval to merge itsMexican mining operations with Southern Peru Copper Corp.(PCU.VL), of which it owns 54%.

It also comes as the company returns to profitability afterseveral difficult years during which falling copper prices ledit into debt problems.

Merrill Lynch estimates that SEC may eventually slap TV Aztecawith a fine of between US$10 million and US$26 million, a figurenegligible compared with the US$218 million profits made byRicardo Salinas and his partner Moises Saba, owners of TVAzteca.

The SEC ruling, expected within the next weeks, would becounterbalanced by the improved economic prospects in Mexico,the next political campaign, which would benefit the television,the low price of shares compared with the company performance,and the anticipated payment of dividends, which tranquilizedshareholders.

Moreover, the eventual fine from SEC would have no effects onother companies ran by Salinas as Elektra, Banco Azteca, Unefonand Iusacell.

NUEVO CONTINENTE: Seeks Government Help to Maintain Services------------------------------------------------------------Peruvian carrier Nuevo Continente enters turbulent skies as ashortage in cash to buy jet fuel resulted in the cancellation ofseveral flights over the weekend.

Reuters reports that the airline had been unable to buy fuel oncredit from Petroperu because of an existing $150,000 overdrafton its $300,000 credit line.

On Monday, Nuevo Continente asked the government's assistance inseeking more funds for its operations. Company spokesman GermanArata said "we'll meet Transport Ministry officials to ask forhelp, like they gave LanPeru." The government had rescued LanPeru last week after being briefly grounded by a court rulingsaying that it breached foreign ownership rules.

The flight cancellations are just the latest on the string ofsetbacks that has plagued the airline. Early this year, USsanctions forced the company to cut back its services. Thesanctions were slapped because of its founder's supposedconnections with the illegal drugs trade.

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PDVSA: Keeps Central Bank in the Dark About Oil Output------------------------------------------------------Venezuela's central bank director, Mr. Domingo Maza, disclosedlast week that state-run oil giant Petroleos de Venezuela(PdVSA) has not reported to the bank the level of oil productionand exports it is obtaining.

"I should confess that we do not have consistent, precise, andaccurate figures on the level of (oil) production and exportsthat PdVSA is obtaining," local daily El Universal quoted Mr.Maza as saying.

At the same time, the banking official criticized PdVSA for notinvesting enough in oil exploration and production.

PdVSA "is not investing enough, first, to maintain existing(production) potential because it could decline, and second, toexpand this potential," said Maza.

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